DALLAS - Saturday, August 13th 2011 [ME NewsWire]
(BUSINESS WIRE)-- Kosmos Energy (NYSE: KOS) announced today financial and operating results for the second quarter ended June 30, 2011. The Company generated a net loss of $9.1 million in the second quarter of 2011, or $0.03 pro forma basic and diluted net loss per share attributable to common shareholders. This compares with a net loss of $32.5 million for the same period in 2010.
Second-quarter 2011 oil revenues were $124.1 million on sales of 996 thousand barrels of oil, or $124.62 per barrel. Jubilee Field average production for the quarter was approximately 66 thousand barrels of oil per day (bopd) gross. EBITDAX¹ was $102.5 million for the second quarter of 2011, compared with $(9.7) million for the second quarter of 2010.
The Company’s cash on hand at the end of the second quarter grew to $818 million. Total liquidity, including cash and available borrowing under the existing debt facility was nearly $1 billion.
“Kosmos’ recent initial public offering enhanced our strong financial foundation and provided additional capacity to continue accelerating the development and exploration of our assets. The commissioning of the Jubilee Field Phase 1 development is ongoing, with water and gas injection facilities now progressing well. We are seeing continued improvement in operating uptime, and field production is anticipated to further ramp up during the remainder of 2011. The Company’s near-term outlook includes growing Jubilee production and a number of exploration and appraisal drilling targets. In addition, we are progressing our inventory of discoveries in Ghana, and our exploration team continues to enhance our overall portfolio with significant new areas,” said Brian F. Maxted, President and Chief Executive Officer.
Operational Update
Ghana
Current gross production at the Jubilee Field is approximately 80 thousand bopd. With final commissioning of process and injection facilities, completion of the remaining wells and the sidetrack of an existing well, the Company is targeting production reaching the FPSO capacity around year-end 2011. Planning for the next phase of Jubilee Field development is underway, and Kosmos expects implementation to commence during 2012.
The “Atwood Hunter” semi-submersible rig is currently drilling the Akasa-1 exploration well on the Kosmos-operated West Cape Three Points Block. The Akasa-1 well is expected to reach final target by the end of August 2011. In addition, the Company plans to further appraise the Teak discovery with an initial two-well program, commencing as early as late 2011.
Appraisal activity to support development planning continues on the adjacent Deepwater Tano Block. Drillstem tests were recently performed on the Tweneboa-2 and Tweneboa-4 wells as part of an integrated reservoir evaluation program. Kosmos also anticipates drilling two additional appraisal wells in the Enyenra Field later this year.
Cameroon
Kosmos continues to perform an extensive technical evaluation of the Kombe N’sepe Block following initial drilling results. The Kombe N’sepe Block operator recently has exercised a contractual right for a six-month extension to the current exploration phase. The Company anticipates drilling the Liwenyi prospect on the Kosmos-operated N’dian River Block in 2012.
Morocco
The Company recently entered into two new petroleum agreements covering the Foum Assaka and Cap Boujdour areas offshore the Kingdom of Morocco. The Foum Assaka license covers approximately 1.6 million acres, and Kosmos will be the operator with a 37.5 percent working interest. The Cap Boujdour license agreement covers 7.3 million acres. Kosmos also will be the operator of the Cap Boujdour license with a 75 percent working interest.
¹ See “Supplemental Non-GAAP Financial Measures” below for a reconciliation of net loss to EBITDAX.
Kosmos Hosts Conference Call and Webcast Today, August 11
Kosmos will host a conference call and webcast to discuss second-quarter 2011 financial and operating results today, August 11, 2011, at 10 a.m. Central time (11:00 a.m. Eastern time). Interested parties can access a live webcast on the Investors page of Kosmos’ website at www.kosmosenergy.com. The dial-in telephone number for participation in the call is +1.877.407.0784. Callers outside the United States should dial +1.201.689.8560.
A replay of the conference call will be available until August 25, 2011, by dialing +1.877.870.5176. Callers outside the United States should dial +1.858.384.5517 for the replay. The passcode for all callers listening to the replay is 376504. The replay will also be available on the Investors page of Kosmos’ website for approximately 30 days.
About Kosmos Energy
Kosmos Energy Ltd. is an international oil and gas exploration and production company focused on underexplored regions in Africa. The Company’s asset portfolio includes major discoveries and exploration prospects with significant hydrocarbon potential in several West African countries. Kosmos is listed on the New York Stock Exchange and is traded under the ticker symbol KOS. For additional information, visit www.kosmosenergy.com.
Kosmos’ first lifting of crude oil from the Jubilee Field occurred in January 2011.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements.The Company’s estimates and forward-looking statements are mainly based on its current expectations and estimates of future events and trends, which affect or may affect its businesses and operations. Although the Company believes that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to the Company. When used in this press release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in the Company’s Securities and Exchange Commission (“SEC”) filings. The Company’s SEC filings are available on the Company’s website at www.kosmosenergy.com.Kosmos undertakes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Kosmos Energy Ltd.
Consolidated Statement of Operations
(In thousands, except per share data, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2011
2010
2011
2010
Revenues and other income:
Oil and gas revenue
$
124,083
$
—
$
216,652
$
—
Interest income
2,613
706
4,967
1,873
Other income
157
1,204
644
2,480
Total revenues and other income
126,853
1,910
222,263
4,353
Costs and expenses:
Oil and gas production
14,301
—
34,296
—
Exploration expenses, including dry holes
85,220
7,625
93,652
33,804
General and administrative
19,760
12,029
33,047
22,959
Depletion and depreciation
22,869
565
46,367
1,077
Amortization - deferred financing costs
2,194
6,986
11,805
12,911
Interest expense
18,400
15,481
38,658
26,499
Derivatives, net
1,363
(7,958
)
10,234
4,971
Loss on extinguishment of debt
—
—
59,643
—
Doubtful accounts expense
(39,782
)
—
(39,782
)
—
Other expenses, net
84
60
61
(11
)
Total costs and expenses
124,409
34,788
287,981
102,210
Income (loss) before income taxes
2,444
(32,878
)
(65,718
)
(97,857
)
Income tax expense (benefit)
11,535
(395
)
(1,976
)
(168
)
Net loss
(9,091
)
(32,483
)
(63,742
)
(97,689
)
Accretion to redemption value of convertible preferred units
(7,595
)
(16,196
)
(24,442
)
(31,941
)
Net loss attributable to common shareholders/unit holders
$
(16,686
)
$
(48,679
)
$
(88,184
)
$
(129,630
)
Pro forma basic net loss per share attributable to common shareholders
$
(0.03)
$
(0.19)
Pro forma diluted net loss per share attributable to common shareholders
$
(0.03)
$
(0.19)
Pro forma weighted average number of shares used to compute pro forma basic net loss per share
348,820
340,030
Pro forma weighted average number of shares used to compute pro forma diluted net loss per share
348,820
340,030
Kosmos Energy Ltd.
Condensed Consolidated Balance Sheets
(In thousands)
June 30,
December 31,
2011
2010
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
818,279
$
100,415
Receivables, net
286,324
238,953
Other current assets
182,708
220,552
Total current assets
1,287,311
559,920
Property and equipment - net
1,065,232
998,000
Other noncurrent assets
61,505
133,615
Total assets
$
2,414,048
$
1,691,535
Liabilities and shareholders’ equity/unit holdings
Current liabilities:
Current maturities of long-term debt
$
—
$
245,000
Other current liabilities
177,229
237,057
Total current liabilities
177,229
482,057
Long-term liabilities:
Long-term debt
1,300,000
800,000
Deferred tax liability
12,513
12,513
Other noncurrent liabilities
32,718
32,870
Total long-term liabilities
1,345,231
845,383
Convertible preferred units
—
978,506
Total shareholders’equity/unit holdings
891,588
(614,411
)
Total liabilities, convertible preferred units and shareholders’
equity/unit holdings
$
2,414,048
$
1,691,535
Kosmos Energy Ltd.
Cash Flow Information
(In thousands, unaudited)
Six Months Ended June 30,
2011
2010
Net cash provided by (used in) operating activities
$
54,499
$
(105,073
)
Net cash used in investing activities
(119,543
)
(383,964
)
Net cash provided by financing activities
782,908
511,740
Net increase in cash and cash equivalents
717,864
22,703
Cash and cash equivalents at beginning of period
100,415
139,505
Cash and cash equivalents at end of period
$
818,279
$
162,208
Supplemental Non-GAAP Financial Measures
This release contains certain financial measures that are non-GAAP measures. Kosmos Energy has provided reconciliations below of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
EBITDAX
Kosmos Energy defines EBITDAX as net income (loss) plus (1) exploration expense, (2) depletion, depreciation and amortization expense, (3) equity-based compensation expense, (4) unrealized (gain) loss on commodity derivatives, (5) (gain) loss on sale of oil and gas properties, (6) interest expense, (7) income taxes, (8) loss on the extinguishment of debt, (9) doubtful accounts expense, and (10) similar items listed above that are presented in “Other”. EBITDAX is not a measure of net income or cash flow as determined by GAAP. The amounts included in the calculation of EBITDAX were computed in accordance with GAAP. EBITDAX is presented herein and reconciled to the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company’s ability to internally fund development and exploration activities, as it excludes the impact of significant non-cash items. This measure is provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in Kosmos Energy’s financial statements prepared in accordance with GAAP (including the notes), included in the Company’s SEC filings and posted on its website.
The following table provides a reconciliation of net loss to EBITDAX for the three and six months ended June 30, 2011 and 2010, respectively.
Three Months Ended June 30,
Six Months Ended June 30,
2011
2010
2011
2010
Net loss
$
(9,091
)
$
(32,483
)
$
(63,742
)
$
(97,689
)
Depletion and depreciation
22,869
565
46,367
1,077
Amortization - deferred financing costs
2,194
6,986
11,805
12,911
Exploration expenses, including dry holes
85,220
7,625
93,652
33,804
Interest expense
18,400
15,481
38,658
26,499
Derivatives, net
1,363
(7,958
)
10,234
4,971
Loss on extinguishment of debt
—
—
59,643
—
Doubtful accounts expense
(39,782
)
—
(39,782
)
—
Income tax expense (benefit)
11,535
(395
)
(1,976
)
(168
)
Equity-based compensation
8,684
598
9,120
1,253
Other
1,111
(88
)
1,023
(404
)
EBITDAX
$
102,503
$
(9,669
)
$
165,002
$
(17,746
)
Contacts
Kosmos Energy Ltd.
Brad Whitmarsh
Investor Relations
+1-214-445-9772
bwhitmarsh@kosmosenergy.com
C. Bell & Associates, Inc.
Crystal “Chris” Bell
Media Relations
+1-214-324-2095
No comments:
Post a Comment